Are you eligible for a tax refund? That’s good news if you are. It means you have remitted more tax than necessary. Taxpayers get a tax refund at the end of the year if they have too much money withheld. Self-employed people get tax refunds if they overpay their estimated taxes. While many people think of refunds as free money, it is usually a loan you give to IRS without any interest. You can file your returns either in-house or outsource the services through platforms such as Taxfyle for accurate and error-free tax preparation.
The Process of Your Tax Refund
The process of tax refund depends on the way one files their taxes. When the government gets your tax returns and processes your information, your tax refund is approved before remitting the money. The returns for tax refunds done electronically are sent out in less than 21 days after your information is obtained by the IRS. However, the process can also take up to 12 weeks before receiving the money.
There are different reasons that can lengthen the period taken for tax refunds. Overwhelmed tax preparers and budget delays are some of the reasons for delayed tax refunds.
How to Claim Your Tax Refund
There are several ways on how you can claim your tax refund. You can opt to go for a direct deposit tax refund for your money to be deposited in different accounts such as retirement or savings account. Alternatively, you can request the government to send you a paper check to your mail. You have three years from the initial filing day to claim your tax refund. Sometimes IRS makes a mistake and sends you money than they should have. If this happens, it is advisable to wait before spending the money.
If you are eligible for child support or accrued student loan bill, some of your tax refunds can be deducted to cater to those debts. So before making any claim about incorrect figures, you should establish if there are debts you are supposed to pay. If you are paying student loans or servicing credit card balances, it is better to use the money from tax refunds to settle such debts.
Getting Your Tax Refund
Upon filing your taxes, you may be worried about when the refund will reflect in your mail or account. IRS has a feature on their website that indicates the progress of your tax refund. This feature requires you to enter either your Social Security number or tax identification number, and then it notifies you whether the tax refund is on the way or if there is a problem that needs to be addressed. Alternatively, you can use IRS2GO mobile app that gives your tax refund status.
Your refund can miss or delay if you have recently moved or changed your address. After updating your address, IRS can then send you a replacement check. If you have moved to a different state, you need to visit the State’s Department of revenue.